Nine central bank governors will join 200 practitioners around the world in Doha to consolidate their commitment in strengthening the governance framework for the Islamic financial services industry.
Governors of central banks from Indonesia, Kuwait, Malaysia, Pakistan, Qatar, Saudi Arabia, Spain, Sudan and United Arab Emirates will be attending a two-day Summit which the Islamic Financial Services Board (IFSB) is organizing on 24-25 May 2005. The Summit, to be held under the patronage of His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of Qatar and hosted by Qatar Central Bank, will provide a platform for regulators, supervisors and market players to deliberate on topical corporate governance issues crucial for enhancing competitiveness and efficiency of business, improving stakeholders’ protection and nurturing public confidence in the Islamic financial services industry.
Amongst the leading figures who will be addressing the Summit is Tan Sri Dr Zeti Akhtar Aziz, Governor of Bank Negara Malaysia. Awarded “Central Bank Governor 2004” by The Bankers, and “Asia’s Best Central Bank Governor 2003” by Euromoney, Dr Zeti has been instrumental in positioning Malaysia as one of the leading international Islamic finance hubs. She chaired the Inauguration Committee for the establishment of the IFSB and had an active role in its creation.
Another renowned governor who will be taking the stage is HE Sheikh Salem Abdul Aziz Al-Sabah, Governor of the Central Bank of Kuwait. HE Sheikh Salem will be chairing a session on Corporate Governance, Transparency and Market Discipline. The long-serving Sheikh Salem is widely respected amongst the bankers’ fraternity, having lead the Central Bank of Kuwait for almost 19 years, and introduced an Islamic banking act in Kuwait in 2003.
Secretary General of the IFSB said, “Corporate governance is chosen as the theme for this year’s Summit not only to analyse conventional wisdoms but more importantly to promote the adoption of best practices that can bring the Islamic financial services industry forward. Ultimately, we should strive for sound corporate governance to be the hallmark of this industry”.
“With more than 30 globally known keynote and featured speakers, including central banks’ governors confirming their participations, we can expect this year’s Summit to be filled with thought-provoking speeches and highly intellectual discussions,” he said.
Following the recent issuance of the new capital adequacy framework commonly known as Basel II, which among others, seek to strengthen market discipline by enhancing transparency in banks’ financial reporting, attention at the Summit is also drawn to the presence of Mr Jaime Caruana, Chairman of the Basel Committee on Banking Supervision and Mr. Malcolm Knight, the General Manager of the Bank for International Settlements.
Both Mr Caruana and Mr Knight will be delivering the keynote addresses of the Summit; Mr Caruana on “Basel II and Corporate Governance Issues” and Mr Knight on “Lessons from International Corporate Governance Standards: the Ethical Perspective in Corporate Governance”. With skeptics such as the former chairman of the US Resolution and Trust Corp. and Federal Deposit Insurance Corp., William Seidman, advocating at the recent Asian Banker Summit in Singapore that Asian bankers should stick to Basel I until they are able to validate the effectiveness of Basel II, the IFSB Summit would provide an excellent avenue for Mr Caruana and Mr Knight to defend their case.
For the second time, the IFSB Summit will be the pre-eminent gathering of regulators, bankers, academics and leading figures in Islamic finance on transformational issues in the industry. After being the impetus for the World Trade Organisation’s Doha Round, it seems that Doha will again stage the ignition of another global agenda – strengthening corporate governance in the Islamic financial services industry.
*Note to Editor
The IFSB was officially inaugurated on 3 November 2002. It serves as an international standard setting body of regulatory and supervisory agencies with vested interest to ensure the soundness and stability of the Islamic financial services industry, defined broadly to include banking, capital market and insurance. In advancing its mission, the IFSB will promote the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Shari`ah rules and principles, and recommend them for adoption.
At present, the IFSB has 65 members which include, among others, 19 regulatory and supervisory bodies, the World Bank, International Monetary Fund, Islamic Development Bank, Asian Development Bank and Bank for International Settlements.
